One of the important employee benefits is to take advantage of a credit union. When there are enough employees to have a need for cash and liquidity, a credit union is formed to help take care of those employees.
A well-run credit union can offer credit cards, facilitate home mortgages and get bulk purchases (like toys for Christmas).
Often when employers talk about their company bank, they are referring to the credit union.
What is the Advantage of a Credit Union?
A credit union is able to cash the paychecks of employees or add the funds from the paycheck to a payment check card.
Credit union offer credit card packages that are competitive with free market credit applications.
As a member of a credit union, you are a stakeholder. This means that you can attend meetings, have a hand in the decision of who gets hired and more.
Credit unions are more likely to approve automobile and personal loans than a traditional bank. While credit unions cannot typically cover a full mortgage on their books, they can help with the funds necessary to start the process.
Employee credit unions typically have higher CD rates because the credit unions want you to store your money in their vault. This is a rare instance where credit unions can outpace inflation with a savings program in today’s market.
Do you have a Company Credit Card Policy?
Having a credit card policy is a good idea. It is very easy for employees to purchase items that are not legal to buy with a company credit card on accident.
For example:
Our travel & entertainment corporate card is to be used for travel, entertainment and meeting expenses. Because it is a VISA card, it can be accepted at any location that accepts VISA.
If you need to extract cash from an ATM using this corporate VISA card, you’ll need to fill out the “Cash Withdrawal Form” and manually enter any purchases made.
Employees will be accountable for any missing funds due to incomplete expenses reports that are not in compliance with IRS standards.
This includes saving ALL receipts. Please turn in receipts to Office of Human Resources.
What do I need to open a Credit Union Account?
Each credit union has its own criteria that is voted upon. Some credit unions wish for you to work within a geographical area (like within a city). Others credit unions can be formed from several companies; an employee could show that they are employed with a participating company.
Another qualifier for getting a credit union account may be a base credit score (like 600). In lieu of a credit score, the employee may need to wait to take advantage of credit union benefits.
Advantage of a Credit Union Conclusion
A huge employee benefit is to have the company associated with a credit union. This really helps employees take care of their liquidity issues that may affect employee attendance and retention.
Making sure that employees are paid every cent they work for is the job of the administrative support services. It is important that payroll is in compliance with the new FLSA standard coming in December.
There is an online time clock app that will keep your business in compliance and make sure that employees are paid the correct amount. It is called Time Clock Wizard (TCW).
This software keeps schedules, time stamps and payroll amounts in the same place for both managers and employees to access easily. For a limited time, there is a free trial of this software; You can sign up for Time Cock Wizard by clicking this link: Sign up for TCW now.
